IQI Dubai Weekly Recap 13th – 19th Jan 2018

Another Dubai property owner embraces cryptocurrencies

More of Dubai’s real estate players are going the cryptocurrency way.

The Star Business Centre, which operates and leases fitted out offices, confirmed it will accept cryptocurrencies as a mode of payment for services rendered. Its tenants can pay rents and service charges by using digital currency along with the traditional payment systems.

“We have recently been watching the cryptocurrency revolution and that encouraged us to enhance our business capability and align them with our business offering,” said Imran Farooq, CEO of Star Business Centre, which is part of the Samana Group.

Recently, developer MAG confirmed that it will accept the OneGram (which is backed by a gram of gold) from buyers at some of its projects.

Source: Gulf News

Damac Properties founder ready to sell 15% stake at Dubai developer

Hussein Sajwani, the Dubai billionaire with links to US President Donald Trump, said Wednesday he was ready to sell 15 percent of his stake at real estate giant Damac Properties.

Established by Sajwani in 2002, Damac has become one of the leading real estate players in the Middle East and is known for its luxury developments

Sajwani, who owns 72 percent of Damac, is estimated to have a fortune of up to $5.2 billion.
In a bid to boost trading in the firm’s shares he said in an interview with Bloomberg that he was “more than happy” to sell part of his stake.

Sajwani insisted the company’s share price remains undervalued despite having increased by 27 percent in 2017. Currently a 15 percent stake would be worth some $850 million.

Source: Arab News

Rents fall in popular areas of Dubai, Sharjah

Dubai: Existing as well as new tenants are successfully negotiating hefty discounts from landlords as house rents rates continue to drop sharply in Dubai and Sharjah, real estate agents and residents told Gulf News on Monday.

According to real estate agents, the supply is much greater than the demand, giving tenants the leverage to negotiate better rents.

Taking advantage of the market, tenants are getting discounted rents even in prime areas like Bur Dubai, Gold Souq and Garhoud in Dubai, while Sharjah areas like Al Majaz, King Faisal Street and Al Khan have also witnessed significant drops in rent.

The drop has created a new buzz in the real estate market with a lot of people trying to take advantage of the situation, going for cheaper options.

The situation has given one section of the market a field day — the real estate brokers.

Source: Gulf News

Dubai to go all out for overseas buyers

Dubai’s property market is to go all out chasing overseas investors. A series of roadshows will be held in key overseas markets — India, China, Russia and even the US — through the year to get these investors to sit up and take notice. The Dubai Land Department is putting its full weight behind the initiative.

The first of these will be held closer to the UAE, through two-day events in Amman and Kuwait and scheduled for late March. They will be followed by Cairo in April, Beijing in May, and Moscow in July. The North American leg is set for October, in Chicago and Dallas. London will get to showcase Dubai realty over three days in September, and Mumbai does so in December.

Last year, Arab and Chinese investors were particularly active in Dubai’s freehold space, while Indians represented the second biggest buyer demographic — spending Dh15.6 billion — after UAE nationals (who did Dh25.3 billion).

“We had a series of overseas events last year and that generated about Dh3 billion in enquiries,” said Majid Saqr Al Merri, senior director at the Dubai Land Department. “Our message to overseas investors remains the same — Dubai can offer yields of 7-11 per cent compared with the 3-5 per cent you might get elsewhere.”

Source: Gulf News